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History Influence of world financial crisis destabilized considerably development of Ukraine. A crisis affected the Ukrainian banking system which dynamic developed sufficiently until the second half 2008 years. A crisis caused the considerable increase of interest rates on credits that resulted in the decline of credit ratings of banks. The crises phenomena stipulated instability of national currency. Influence of world financial crisis destabilized considerably development of Ukraine. A crisis affected the Ukrainian banking system which dynamic developed sufficiently until the second half 2008 years. A crisis caused the considerable increase of interest rates on credits that resulted in the decline of credit ratings of banks. The crises phenomena stipulated instability of national currency.

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Crises Occurrences The problem of instability of financial and credit system of Ukraine has its own peculiarities. Firstly, crisis occurrences are connected to the imperfectness of state economic development model and common macro- economic factors. Secondly, instability of financial sphere is predestined by the problems of inner financial policy in the sphere of credit and currency market regulation. The problem of instability of financial and credit system of Ukraine has its own peculiarities. Firstly, crisis occurrences are connected to the imperfectness of state economic development model and common macro- economic factors. Secondly, instability of financial sphere is predestined by the problems of inner financial policy in the sphere of credit and currency market regulation.

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Characteristics of the crisis There was an acute shortage of resources in the banks and the whole economy as a whole. Inadequate capitalization makes competitiveness of Ukrainian banks in the international market impossible. Domestic financial resources are dispersed among a large number of small banks.

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The Main methods of penetration of foreign capital in the Ukrainian banking Sector The establishment of a branch or subsidiary, acquisition of existing local bank in the privatization or bankruptcy. Portfolio investment in current local bank, merge or acquisition of another foreign bank The establishment of a branch or subsidiary, acquisition of existing local bank in the privatization or bankruptcy. Portfolio investment in current local bank, merge or acquisition of another foreign bank

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Disadvantages of non-regulated advantages of foreign bank The situation confirms the need for a balanced state policy regarding the liberalization of access to the Ukrainian financial market. Not regulated access of foreign bank capital could lead to: 1.Less competition and market capitalization of domestic banks. 2.Reduce the effectiveness of banking supervision, which would entail negative consequences for the economy as a whole and for the financial market in particular. The situation confirms the need for a balanced state policy regarding the liberalization of access to the Ukrainian financial market. Not regulated access of foreign bank capital could lead to: 1.Less competition and market capitalization of domestic banks. 2.Reduce the effectiveness of banking supervision, which would entail negative consequences for the economy as a whole and for the financial market in particular.

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Conclusion It is necessary to consider the factors that contributed to the development of crisis phenomena in the Ukrainian economy: a speculative building development stimulated the growth of mortgage lending; monoculture export dependence of the Ukrainian economy; credit expansion of the National Bank of Ukraine; the foreign banks’ interference policy and lobbying of their parent companies’ financial interests; uncontrolled increasing of external debt, which threatens the economic security of the state; underdevelopment of the stock market in Ukraine as in alternative banking channel of financial resources redistribution. It is necessary to consider the factors that contributed to the development of crisis phenomena in the Ukrainian economy: a speculative building development stimulated the growth of mortgage lending; monoculture export dependence of the Ukrainian economy; credit expansion of the National Bank of Ukraine; the foreign banks’ interference policy and lobbying of their parent companies’ financial interests; uncontrolled increasing of external debt, which threatens the economic security of the state; underdevelopment of the stock market in Ukraine as in alternative banking channel of financial resources redistribution.